Insurance Data Solutions rom TIBCO Software - CIO … Data Solutions rom TIBCO Software The insurance industry is facing numerous challenging conditions these days. In addition to

Insurance Data Solutions From TIBCO Software

The insurance industry is facing numerous challenging conditions these days. In addition to ever-changing perils, insurers are wrestling with:

•  Highly competitive pricing environments for most lines of commercial coverage;

•  Tight regulation of rates;

•  Premium growth slowed by a sluggish economic recovery;

•  Customers who expect 24/7 service from multiple communications platforms;

•  Persistent fraud; and

•  Information overload.

Insurers must find new ways to manage data, communicate with customers, hold down expenses, and get the premium dollars they are entitled to. Innovative solutions from TIBCO Software can help them achieve their goals.

SOLUTION BRIEF | 2

ACTIVE UNDERWRITINGManual underwriting and auditing attention to every business client is expensive, but there are risks when some accounts are neglected. Customers may understate payroll and sales figures and vehicle and equipment values. Unknown to the insurer, growing businesses may hire drivers with poor driving histories. The result is artificially reduced premiums and unprofitable accounts

TIBCO Software’s Active Underwriting platform can monitor these issues at a greatly reduced cost.

Active Underwriting uses Complex Event Processing Technology (CEP) to be the underwriter’s eyes. It pulls data from multiple external data sources. When it finds data that implicates a specific underwriting rule, it triggers one or more actions. The process works like this:

•  The CEP engine receives data and updates the account information.

•  If the updates trigger the application of any underwriting rules, the system gathers additional data.

•  Based on the additional data, the engine decides whether underwriting action is needed. If the answer is yes, it initiates a workflow request.

•  Staff receives the request and performs the action.

•  Parameters for triggering action are updated and the CEP engine returns to passive monitoring.

•  TIBCO’s Spotfire Analytics system looks for patterns and trends. Business analysts then refine the logic used by the CEP engine.

Here is an example of how insurers can use Active Underwriting:The engine monitors Dun & Bradstreet reports, news reports or other sources.

It detects that the customer’s employee count may have jumped. This triggers an underwriting rule that an interim audit be done when a payroll increase of more than 10 percent is likely. The engine gathers more data, confirms the possibility, and sends a request to the Premium Audit department. The audit is completed, the payroll and premium adjusted, and the engine resumes monitoring the policy. Spotfire Analytics permits business analysts to identify patterns hidden in the data. With this information, they can adjust the logic to address new areas of concern and opportunity.The platform minimizes human involvement outside of the performance of the audit and the analysis of patterns uncovered by Spotfire Analytics. The benefits to the insurer include:

•  Efficient use of staff resources.

•  Automatic prioritization of underwriting actions.

•  Reduced loss ratios through additional premiums.

•  Policies are reviewed (and customers bothered) only when there is a sound basis for doing so.

SOLUTION BRIEF | 3

CUSTOMER SERVICE CHANNEL MANAGEMENTWhen insurance customers need service, they ask for in a wide variety of ways - emails, faxes, phone calls, insurance brokers, Web site contact forms, tweets and U.S. mail. Customer support staff lack a consistent process for handling these varied formats. They must use multiple systems and interfaces to perform the same tasks for different customers. Consequently, response times vary depending on how the request arrived. Tracking the status of requests that arrive in so many different ways is cumbersome. Requests slip through the cracks, and measuring customer service performance is difficult.

The solution: TIBCO Software’s omni-channel customer service management platform.

TIBCO’ enterprise service bus (ESB) takes requests and messages in different formats and converts them to one common format. Updates that come in are converted as well. Staff can work the problem using the one format and update the original systems seamlessly. TIBCO’s system has the components necessary to turn this concept into reality.

The benefits for insurers are many:

•  Regardless of how a request arrives, staff need only use one common interface to handle it.

•  The common interface shortens response times, as staff does not have to chase down paper requests and input information.

•  Better customer service improves perceptions of the insurer’s brand.

•  More efficient handling lowers expense ratios.

•  Management has more accurate information about customer service performance.

•  Customer service staff feel less stress, reducing turnover.

MASTER DATA MANAGEMENTTraditionally, insurers have organized themselves along product lines - property, casualty, personal and commercial lines, life, health, etc. This creates product silos that may not readily share information with each other. Different areas of the company gather the same information. Manual efforts to consolidate information can cost millions of dollars a year, as staff reconciles, corrects and combines the data.

Also, many transactions still begin with paper, particularly in the life and commercial lines areas. Staff can make data input errors, paper records can wind up in the wrong hands, and the data can be falsified. A Tower Group survey (https://www.emc.com/collateral/analyst-reports/towergroup-gorman.pdf) revealed that more than half of insurers reported data quality and security as their top issue.

TIBCO Software’s Master Data Management platform can solve these problems. It creates separate repositories for data but allows for relationships and hierarchies that span those repositories, enabling easy sharing of data. It embeds rules in its engine for validating data entries, so that the captured information is credible. Insurers can choose from several out of the box business process templates to find those that match existing processes. It enables easy synchronization of data between different areas. Lastly, it captures the data record history, allowing users to audit records and find points where significant changes or error occurred.

SOLUTION BRIEF | 4

TIBCO Software Inc. (NASDAQ: TIBX) is a global leader in infrastructure and business intelligence software. Whether it’s optimizing inventory, cross-selling products, or averting crisis before it happens, TIBCO uniquely delivers the Two-Second Advantage®— the ability to capture the right information at the right time and act on it preemptively for a competitive advantage. With a broad mix of innovative products and services, customers around the world trust TIBCO as their strategic technology partner. Learn more about TIBCO at www.tibco.com.©2014, TIBCO Software Inc. All rights reserved. TIBCO, the TIBCO logo, The Two-Second Advantage, and TIBCO Software are trademarks or registered trademarks of TIBCO Software Inc. in the United States and/or other countries. All other product and company names and marks mentioned in this document are the property of their respective owners and are mentioned for identification.

10/24/14

Global Headquarters 3307 Hillview Avenue Palo Alto, CA 94304+1 650-846-1000 TEL +1 800-420-8450 +1 650-846-1005 FAXwww.tibco.com

One large provider of Workers’ Compensation insurance was wrestling with the amounts of staff time and error rates resulting from relying on manual data entry. Users had to input the same data into three different systems, leading to inconsistency. Its systems had no data validation processes, so errors went through unnoticed. TIBCO’s MDM platform simplified the system architecture and created a single point of data entry. This lowered costs and improved data quality. It also sped up processing time, enabling new business to close more quickly and boosting revenue.

Every insurer needs to find new ways to become more nimble and to use big data to its advantage. TIBCO’s platforms can improve efficiency, protect against fraud and loss of earned premium, and create opportunities for selling more insurance to existing customers.

Visit www.tibco.com or call 1-866-247-8182 today to learn more about TIBCO’s information management solutions.